PayPal Ventures Leads $14 Million Fundraise for LatAm’s eCommerce Startup Nocnoc

PayPal Ventures has helped Latin America eCommerce platform Nocnoc raise $14 million.

The Series A funding will let Nocnoc expand into new markets and enhance its fulfillment solution, according to a Friday (June 9) press release. Latin America has one of the world’s fastest-growing eCommerce markets, but one that is the toughest to crack.

“Marketplaces make up 80% of eCommerce in Latin America, but are highly fragmented,” said Nocnoc Co-founder and CEO Ilan Bajarlia in the release. “There is no ‘winner takes all’ player, like Amazon or Walmart in the U.S., or Taobao or JD in China.”

That makes simultaneously listing, managing and selling across these platforms difficult and costly, Bajarlia added in the release, noting that Nocnoc “obscures this fragmentation by allowing international sellers to quickly and easily grow their sales in Latin America while preserving their ability to focus on their core sales channels.”

Nocnoc’s solution lets eCommerce retailers upload their products to the company’s platform and begin selling in Nonnoc’s online megastores across marketplaces that include Amazon, Mercado Libre, Americanas, Carrefour and Walmart.

Latin America has become an “eCommerce paradise,” PYMNTS reported earlier this year.

“Still considered an emerging collection of economies, Latin America has nevertheless taken a lead in aspects of the digital transformation of payments, in some ways pulling ahead of developed nations including the United States in areas like instant and real-time payments,” according to a March PYMNTS report.

That’s important to residents of the 33 countries that make up Latin America, along with the eCommerce players inside and outside the region as they search for more cost-efficient methods of fueling online sales with faster settlement, making trade into and out of the region alluring for growth in 2023.

Speaking with PYMNTS’ Karen Webster, Daniel Passarelli, managing director for Latin America at payments platform Worldline, noted that the region represents a total addressable market of more than 600 million consumers generating nearly $6 trillion in gross domestic product (GDP).

Last month, PayPal Ventures led a $52 million funding round for Wallet-as-a-Service provider Magic.